Abstract
This chapter is an introduction to the basic principles of developmental and growth theory. The basic questions which need to be answered about economic growth are presented at this part. In the next section, the relationship between development, growth, and prosperity is analyzed as well as the different ways economists value prosperity. Output gap and its relationship with applied economic theory and potential growth are presented. The analysis continues with the clarification of the terms “development” and “growth.” The main perspective of this book is to address economic development and growth as parts of a greater system of economic analysis. With this in mind, it is made clear that everything which applies to the part, does not necessarily apply to the whole and vice versa. Two ways to categorize data are presented: stock variables and flow variables. How economists perceive the variables may have very different effects to those originally expected. This chapter, concludes that the concept of growth has a wide set of parameters which necessitates a multiplicity of approaches.
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Petrakis, P.E. (2020). Introduction to General and Integrated Development and Growth. In: Theoretical Approaches to Economic Growth and Development. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-50068-9_2
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DOI: https://doi.org/10.1007/978-3-030-50068-9_2
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